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By Chukwuma Umeorah
Owing to strong demands for its shares by investors, the share price of Transcorp Power Plc (Transpower) grew by 33.06 per cent within just three days of its listing on the main board of the Nigerian Exchange Limited (NGX).
At the end of trading activities on Wednesday, the stock maintained its upward trajectory closing at N319.4 per share reflecting the robust investor interest in the company. Its current market capitalization stands at N2.36 trillion.
The power company, a subsidiary of Transnational Corporation Plc (Transcorp), on Monday listed 7.5 billion ordinary shares at N240 per share, boosting NGX total market capitalization by N1.8 trillion, becoming the second power company to be listed on the Exchange.
Analysts speculate a continuous bullish trend for Transpower ,may extend beyond the current trading week as investors continue to buy on the back of high demand. Its Parent company, Trancorp had also seen a significant increment of its share price from N14.28 to N18.99 per share representing 32.98 per cent growth since listing its offshoot.
The Chairman of Highcap Securities, David Adonri, noted that, “The rally may extend beyond this week because investors’ appetite appears to be very high, and the volume of supply is able to match demand on a daily basis. On the back of that, it is likely to gather price momentum through this week.
“As regards the growth of its parent company, The Group Chairman of Transcorp, Tony Elumelu, during the listing ceremony clarified issues relating to the relationship between Transpower and Transcorp plc. He revealed that Transcorp owned the majority of the shares, about 51 per cent. This shows a direct relationship between the two, so as Transpower grows, it uplifts the other. If these shares continue the way they are currently moving, as well as its parent company, both of them would lift and sustain the entire market performance in a bullish trajectory for the week.”
Meanwhile at the close of mid-week trading activities on the local bourse, a total of 416.47 million units of shares amounting to a market value of N19.5 billion were traded in 9,338 deals. Compared with the previous NGX trading day the data shows a 5 per cent improvement in volume, a 39 per cent decline in turnover, and a 15 per cent decline in deals with the current market capitalization at N56.3 trillion.
A total of 123 equities participated in trading, ending with 18 gainers and 30 losers. Transcorp Power led the gainers with 9.99 per cent share price appreciation closing at N319.40 per share, followed by Transcorp Nigeria adding 9.96 per cent at N18.99 per share. FBN Holdings and Africa Prudential also added 9.95 and 9.49 per cent to close the day’s trade at N34.25 and N7.50 per share respectively.
In terms of volume, Transcorp Nigeria recorded the highest volume of 67.3 million traded shares, followed by FBN Holdings trading 47.7m units while Guaranty Trust Holding exchanged 37.5 million units of shares.
